Industrial Key Takeaways

Miami-Dade County
21Q3
• Population growth remains a key demand driver.
• Healthy leasing market is driving investor demand though op-
portunities are limited.
• The vacancy rate tied its all-time low thanks to a growing popu-
lation and increased consumer demand.
• Rental rates increased 12.1% YOY, to $11.45 per square foot
NNN.

YOY YOY Under YOY Direct WD Asking Lease YOY

Vacancy Rate Net Absorption Construction Rates (NNN)

3.2% FORECAST
+1.4M SF FORECAST
3.2M SF FORECAST
$10.72/SF FORECAST

Vacancy Ties All-Time Low due to Persistent Demand

Implications of the coronavirus were still driving demand for industrial product in the third quarter of 2021. In Miami-Dade
County, population growth continues to have a large impact on industrial demand, causing increased consumer demand and
driving the need for warehouse and distribution users. This has been the trend all year, making for strong leasing activity in
the first three quarters and positive net absorption accompanied by a declining vacancy rate each quarter as move-ins from
executed deals take place. In the third quarter, the vacancy rate dropped 40-basis points quarter-over-quarter, to tie its all-time
low of 3.2 percent.

Market Indicators Market Graph

5.2% 9.4% 1.483% 2,500,000 6.0%
Unemployment GDP - Quarterly U.S. 10 Year
Rate % change yr/yr Treasury Note
5.0%
2,000,000

Historic Comparison 4.0%

1,500,000
20Q3 21Q2 21Q3
3.0%
Total Inventory
220,393.2 223,059.2 223,472.2
(in Thousands of SF) 1,000,000
2.0%
New Supply
273.4 236.1 442.0
(in Thousands of SF) 500,000
1.0%

Net Absorption
527.9 1,407.9 1,443.2
(in Thousands of SF) 0 0.0%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Overall Vacancy 4.7% 3.6% 3.2% 2018 2019 2020 2021

Absorption New Supply Total Vacancy

Under
Construction 3,641.4 3,624.5 3,182.5 The Miami-Dade County industrial market remains strong with net
(in Thousands of SF) absorption just higher than the previous quarter, at 1.4 million square
feet. Even more impressive, the County tied it’s all time record low for
Overall Direct Asking
$10.21 $11.28 $11.45 vacancy, declining 40-basis points quarter-over-quarter to 3.2 percent.
Lease Rates (NNN)

Recent Transactions

Lease Lease Lease Sale Sale Sale

8801 NW 87th Ave 21201 NW 43rd Ave 4120 W 91st Pl 4151 W 108th St 8200 NW 93rd St 5400 NW 32nd Ct
Medley/HG | 368k SF NE Dade| 180k SF Medley/HG | 148k SF Medley/HG | $185/SF Medley/HG | $204/SF Miami Lakes | $113/SF
 Industrial
Miami-Dade County

21Q3
Executive Summary
In the third quarter of 2021, the Miami-Dade County industrial In Miami-Dade County’s land constrained market, new supply
market continued to strengthen, experiencing all positive plays an important role as a way to satisfy increased demand
changes to markets fundamentals, for the third consecutive from a growing population. This was displayed in the two
quarter. The asking rental rate continues to grow due to new buildings delivered in the third quarter, both of which
persistent demand, increasing 12.1 percent year-over-year, were fully leased upon delivery leaving 3.2 million square feet
to $11.45 per square foot NNN. Additionally, net absorption under construction which is expected to lease quickly and
reached positive 1.4 million square feet while the vacancy rate drive asking rental rates up. The healthy and ever-improving
declined 40-basis points quarter-over-quarter ending Q3 at 3.2 leasing market bodes well for industrial investor demand in
percent, a result of previously executed deals taking occupancy. Miami-Dade County, though opportunities are limited. In the
New deals closed this quarter include Carbel signing a new lease third quarter, three of the top five sale transactions were over
for 368,287 square feet at First Park Miami and USPS signing a $30 million; the largest sale was Terreno Realty purchasing
new lease at Bridge Point Commerce Center for 179,634 square Countyline Corporate Park Building 26 for $40.8 million, or
feet among many others. $185 per square foot.

Supply Chain Disruptions

Supply chain disruptions, partly induced by the global PortMiami Cargo
A surge in TEU's through PortMiami in 2021

pandemic, have sparked immense challenges. The disruption 120,000 2020 2021

stems from issues in supply, as consumers have a pent-up

demand for goods. Factory shutdowns, a shortage of truck 100,000

drivers, a reduced workforce and rising costs of raw materials 80,000

are all challenges that retailers, logistics and transportation

TEU's

companies are contending with. To help with supply chain jams 60,000

in California, the Florida Ports Council is encouraging shipping 40,000

companies to use the Panama Canal to come to Florida.

20,000

0
January February March

Source: Colliers, Port of Miami

Right-Sizing of Third-Party Logistics

The rapid growth of e-commerce — a trend fast tracked during Logistics and Distribution Leases
Signed in South Florida in 2020 and 2021
the past couple of years — not only increased Amazon’s
demand for larger fulfillment centers, but also for other large
traditional retailers and their fulfillment centers. In addition, 2021

third-party logistics companies ramped up their space needs.

Supply chains continue to be right-sized and the third-party
logistics industry, in particular, is expanding its e-commerce 2020

distribution capabilities faster than any other major industrial

occupier. This is expected to continue in the coming quarters 0 500 1000 1500 2000 2500 3000 3500

and will be a major demand driver going forward.

Square Feet (Thousands)

Q1 Q2 Q3 Q4

Colliers | Miami-Dade County | 21Q3 | Industrial Report

 Industrial
Miami-Dade County

21Q3
Significant Sales Activity
Address Size Buyer Sales Price

Countyline Corporate Park Bldg 26 - 4151 W 108 St 220,000 Terreno Realty $40,808,000 ($185)

South River Industrial - 8200 NW 93rd St 170,800 VlietCo Enterprises $34,805,000 ($204)

Seaboard Industrial Park - 3455 NW 54th St & 5530,

292,755 HighBrook Investors $33,000,000 ($113)
5400 NW 32nd Ct

SARA International- 13200, 13260, 13290 NW 45 Ave 197,005 Longpoint Realty Partners $21,780,000 ($111)

15801 NW 49th Ave 142,565 Lightstone Group $20,000,000 ($140)

Significant Lease Activity

Address Size Tenant Type

First Park Miami - 8801 NW 87th Ave 368,287 Carbel New

Bridge Point Commerce Center Bldg B -

179,634 USPS New
21201 NW 43rd Ave

Beacon Logistics Park Bldg F - 4120 W 91st Pl 147,768 Custom Veterinary Services New

Flagler Station Bldg 38 - 9175 NW 117th Ave 136,989 Capital Logistics New

Newsdealers - 10100 NW 25th St 105,771 Amcar Lamprecht New

Miami-Dade County Overall Market

Quarter Direct Total Net Absorp. Net New Under Mfg. Avg. Flex Avg.
Whse. Avg.
# of Total Direct Direct
& Vacancy Vacancy Current Absorp. Completions Construction Direct Asking
Buildings Inventory SF Asking Asking Rate
Year % % Qtr. SF YTD SF SF SF Rate NNN
Rate NNN NNN

2021 Q3 5,432 223,472,173 2.9% 3.2% 1,443,165 5,032,455 441,984 3,182,495 $10.72 $9.43 $25.36
2021 Q2 5,432 223,059,158 3.4% 3.6% 1,407,901 3,589,290 236,100 3,624,479 $10.71 $9.45 $25.19
2021 Q1 5,431 222,843,307 3.9% 4.2% 2,181,389 2,181,389 1,718,654 2,970,148 $9.96 $6.43 $22.75
2020 Q4 5,427 221,207,798 4.2% 4.5% 1,329,497 2,621,674 814,636 3,860,628 $9.77 $7.07 $20.88
2020 Q3 5,420 220,393,162 4.5% 4.7% 527,878 1,292,177 273,360 3,641,390 $9.74 $8.25 $19.10
2020 Q2 5,418 220,146,870 4.5% 4.9% 652,557 764,299 1,592,703 3,469,150 $9.76 $8.72 $20.19
2020 Q1 5,411 218,554,167 4.2% 4.5% 111,742 111,742 1,036,549 4,477,353 $9.72 $8.81 $19.45
2019 Q4 5,405 217,559,990 3.8% 4.1% 1,127,144 2,742,116 1,086,321 4,273,944 $10.10 $8.55 $19.32
2019 Q3 5,400 216,553,092 3.9% 4.1% 87,551 1,614,972 536,897 4,030,578 $10.10 $8.50 $18.76
2019 Q2 5,398 216,054,148 3.7% 4.0% 382,547 1,527,421 764,646 4,368,065 $10.13 $8.63 $19.63
2019 Q1 5,391 215,289,502 3.6% 3.8% 1,144,874 1,144,874 984,654 4,542,731 $9.57 $8.63 $16.71
2018 Q4 5,388 214,378,449 3.8% 3.9% 1,220,446 3,077,745 1,850,924 3,213,732 $10.38 $11.17 $20.00
2018 Q3 5,380 212,550,805 3.5% 3.7% 705,292 1,857,299 462,491 4,917,148 $10.37 $11.43 $20.33
Bold Denotes Colliers Represented Transaction

Colliers | Miami-Dade County | 21Q3 | Industrial Report

 Industrial
Miami-Dade County

21Q3
Submarket Breakdown
Net Absorp. New Under Avg. Direct
# of Inventory Direct Total
Submarket & Property Type Current Qtr. Completions Construction Asking Rate
Buildings SF Vacancy % Vacancy %
SF SF SF NNN

Miami Airport West

Warehouse Distribution (WD) 746 36,371,561 3.6% 4.1% (118,667) 0 127,150 $10.55
Manufacturing (MF) 24 1,959,047 0.0% 0.0% 0 0 0 -
Flex (F) 130 5,195,111 1.3% 1.3% 1,873 0 0 $22.80

Medley / Hialeah Gardens

Warehouse Distribution (WD) 822 44,067,912 3.0% 3.8% 896,097 441,984 2,411,707 $8.53
Manufacturing (MF) 66 3,748,215 0.8% 0.8% (27,000) 0 0 -
Flex (F) 60 2,057,487 0.7% 0.7% 4,314 0 0 -

Central Dade
Warehouse Distribution (WD) 218 4,891,927 4.5% 4.5% 50,473 0 0 $22.64
Manufacturing (MF) 12 401,915 0.0% 0.0% 0 0 0 -
Flex (F) 19 674,778 9.9% 9.9% 3,488 0 0 $23.61

Northeast Dade
Warehouse Distribution (WD) 637 32,407,352 3.4% 3.4% 258,265 0 0 $10.33
Manufacturing (MF) 48 2,969,644 0.0% 0.0% 0 0 300,000 $8.23
Flex (F) 37 1,398,047 5.0% 5.0% (11,547) 0 0 $24.66

Miami Lakes / Hialeah

Warehouse Distribution (WD) 886 29,778,789 3.1% 3.1% 412,004 0 310,388 $10.09
Manufacturing (MF) 146 6,631,963 2.8% 3.1% 17,108 0 0 $7.15
Flex (F) 41 1,391,159 0.6% 0.6% (68) 0 0 -

Miami Airport East

Warehouse Distribution (WD) 659 25,485,772 3.0% 3.0% (54,405) 0 0 $16.44
Manufacturing (MF) 35 1,576,460 8.2% 8.2% 0 0 0 $12.50
Flex (F) 46 2,144,109 3.3% 3.3% 13,799 0 0 $29.08

South Dade
Warehouse Distribution (WD) 646 16,367,554 1.3% 1.3% 6,517 0 33,250 $9.11
Manufacturing (MF) 35 1,115,510 1.5% 1.5% (950) 0 0 -
Flex (F) 113 2,696,670 1.7% 1.7% (4,809) 0 0 $17.09

Colliers | Miami-Dade County | 21Q3 | Industrial Report

 Industrial
Miami-Dade County

21Q3
Submarket Map

Colliers | Miami-Dade County | 21Q3 | Industrial Report

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